Question
1. A manager at your company (Apple INC) is thinking about using a break-even analysis. Of what shortcomings should this manager be aware? 2. The
1. A manager at your company (Apple INC) is thinking about using a break-even analysis. Of what shortcomings should this manager be aware?
2. The CFO of your company (Apple INC) states that the composite cost of capital is saucer-shaped or U-shaped. Explain what this means.
3. Explain the trade-off between retaining internally generated funds and paying the cash dividends. Which of these does your company do? From what financial statement did you get this information? Explain the dividend policies of your company. Do you support from a financial perspective the policy? Why or why not? In reference internally generated funds= net income that the company has earned during the year. this money is made internally & now the company (Apple INC) is deciding what to do with it. Do they keep the money or reinvest it back into the business (IE: purchasing inventory, equipment, paying down debt or do they pay it out to stockholders?)
4. What is the impact of flotation costs on the financing decision?
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